Tax changes to building contractors could potentially hurt housing affordability, the HIA has said.
According to the HIA’s chief executive Graham Wolfe, proposed radical changes to tax and industrial relations arrangements for independent contractors would kill productivity and should be decisively rebuffed by the Gillard Government.
“Trade unions opposed to contracting are using industrial relations and political tactics to try to restrict its natural growth and force contractors into an inflexible and inefficient industrial relations system,” Mr Wolfe said.
“Existing tax laws for assessing contractors running personal services businesses are fundamentally sound. Tax laws should not be used to force the use of employees rather than contractors, or to police so-called sham contractors.
“Neither governments nor unions should be in the business of deciding what working arrangements suit a particular business or individual. Governments should recognise the significant, beneficial and welcome contribution that contractors make to the Australian economy and in particular to affordable housing.”